Banking News

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With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

New player to spark UK savings 'price war'

12 October 2006

A new online savings provider called icesave.co.uk has entered the competitive UK savings market in a move that has been dubbed as "great news for savers".

Sean Gardner, the chief executive of financial comparison site MoneyExpert.com, said icesave.co.uk's entrance should be welcomed as it could potentially start a "savings price war".

The new company, which is under foreign ownership but is looking to make inroads into the profitable UK market, offers accounts including a 5.2 per cent cash account for investments of £250 or above.

"[This rate] is nearly double the average of 2.86 per cent," Mr Gardner noted. "This goes to show how all savers have a duty to review their accounts regularly."

Mr Gardner recommended anyone whose savings rate was below average to "kick it into touch" and to keep abreast of the latest accounts to "make your money work as hard as possible for you".

He also predicted a rise in interest rates from the Bank of England in the near future and said consumers would do well to wait until this happened as "many providers will pass this on to savers by hiking their rates even further".